PRODUCT Alpha Beta Delta Gamma Price $350.00 $400.00 $500.00 $320.00 Material Cost $50.00 $40.00 $125.00 $150.00 Weekly Demand in Units 100 60 50 80 Processing Time at Machine 1 in Minutes 20 40 10 Processing Time at Machine 2 in Minutes 25 20 50 Processing Time at 20 60 30 Machine 3 in Minutes
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Supertronics, Inc., would like to know how the firm’s profit-
ability is altered by product mix. Currently, product mix is
determined by giving priority to the product with the highest
per-unit contribution margin (defined as the difference be-
tween price and material cost). Details on the Supertronics
product line, including processing time at each workstation,
follow:a. Assume that Supertronics has 5,500 minutes of capacity
available at each workstation each week. Develop a linear
program to define the production mix that maximizes
contribution margin.
b. Solve your formulation using a computer package such as
POM for Windows.
c. Given your solution for part (b), which machine is the
bottleneck?
d. How would your formulation and solution in part
(b) change if 50 units of each product were already
committed to customers and thereby had to be
produced?
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